Bitcoin may be approaching the historic $100,000 mark, but analysts warn that there could be up to a 30% correction before it is reached. The cryptocurrency market is known for its volatility, and the move to a six-figure price tag could be accompanied by significant fluctuations.
Bitcoin still in an uptrend
At the time of writing, bitcoin was trading at $96,458, down more than 3% from its all-time high of $99,800 reached on November 22. Although there has been a slight decline, the long-term trend remains bullish and investors are still expecting the USD 100,000 mark to be crossed.
Analysts agree that reaching USD 100,000 is only a matter of time, but some warn of a deeper correction before that milestone. According to Ryan Lee, principal analyst at Bitget Research, bitcoin could fall as much as 30% before resuming its uptrend. “Investors will have to face a sharp correction as they try to break the important USD 100,000 mark. Historical data shows that bitcoin could fall as much as 30% before reaching its cyclical peak,” Lee said.
The impact of ETFs and institutional interest
The decline in bitcoin’s price has been compounded by a drop in investment in US bitcoin spot ETFs. According to data from Farside Investors, these funds saw net outflows of over $122 million over two days. On Nov. 27, the situation stabilized with modest inflows for Bitwise and VanEck, suggesting the market could be finding a balance.
While the interest of large investors may fluctuate in the short term, most analysts agree that bitcoin’s growth is inevitable. According to Andy Liano, a blockchain expert, breaking the $100,000 mark will not only become a price milestone, but also a symbol of boosting confidence in decentralized finance. The resurgence of ETF purchases, combined with MicroStrategy’s recent $2.6 billion bond sale, could fuel further growth in the cryptocurrency market and push bitcoin to new all-time highs before the start of 2025.
